Following a late-night debate, the Lords passed the Water Industry (Financial Assistance) Bill, which enables the state to offer contingent financial support to nationally significant water or sewerage infrastructure projects.
The legislation also provides for government to deliver a promised £50 a year rebate to each South West Water household customer to address a historically high cost burden.
Labour environment spokesman Lord Knight of Weymouth said: “It is difficult to oppose the bill as it stands, as it does only two things and in principle I support both.
“Who would not want South West Water customers to have some relief from their extraordinarily high bills or for the River Thames to be relieved of unacceptable levels of sewage?”
However, he said it was “the wrong bill” when more substantial water legislation was needed, and expressed concerns about the procedure.
The legislation was classified as a money bill, which meant peers did not have the right to propose amendments.
Lord Grantchester (Labour) described as “deeply unsatisfactory” that the upper house had been deprived of an opportunity to fully scrutinise the issues.
There were also complaints about the late hour of the debate, which did not start until nearly midnight and went on until 1:48am.
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